European stocks extend losses, banks weigh

AGENCIESAug 13, 2008, 05.09pm IST

LONDON: European shares extended losses in late morning trade with banks weighing as concerns over the impact of the subprime crisis re-materialised.

By 1000 GMT, the FTSEurofirst 300 index of top European shares was down 1 percent at 1,196.76 points. The index lost 0.3 percent on Tuesday. Banks took more than 5 points off the index, tracking losses in US banking shares overnight on the back of news that JPMorgan has racked up another $1.5 billion of mortgage-related losses.

The sector is also in the spotlight after the Bank of England published its quarterly inflation report, which boosted expectations of future rate cuts. Notable gainers included German utility E.ON , which rise more than 2 percent after it released first-half results which beat expectations.